AUD/USD: bid on the coat tails of positive Kiwi post RBNZ, eyes on N.Korea risk

Currently, AUD/USD is trading at 0.7893, up 0.06% on the day, having posted a daily high at 0.7897 and low at 0.7872.

AUD/USD has been suffering in mild risk-off markets and with a resurgence in the greenback while also suffering disappointing data of late. The Chinese CPI missed and consumer confidence was way off the mark yesterday. "The recent slide in the AUD could extend to 0.7835 (14 July high) if the US dollar rebound continues. Risk sentiment will also feature," explained analysts at Westpac. 

RBNZ: statement was less dovish than expected - Westpac

AUD/USD 1-3 month: The analysts at Westpac suggested that if the RBA remains firmly on hold, as they expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall to 0.76 by year end. 

For the day ahead, domestic CPI expectations for August are out. The last reading came in at 4.4%. Meanwhile, the Aussie is higher on the coat tails of the Kiwi post a less dovish RBNZ, although there are heightened tensions over the relationship between N/Korea and the US with further taunting comments from the Northern Korean press again today in retaliation to Trump's "fire and fury" comment. 

N. Korea says seriously examining "simultaneous fire" of 4 missiles at Guam

AUD/USD levels

AUDUSD: Selling rallies

Valeria Bednarik, chief analyst at FXStreet explained that the technical bias is bearish, "... given that in the 4 hours chart, the price remains below a bearish 20 SMA, whilst technical indicators extend their consolidative phase within a negative territory, yet with the pair posting lower lows daily basis since last week."